Expression created by American entrepreneur Sean Ellis, growth hacking does not have a literal translation, but the idea behind it is to carry out experiment-oriented marketing.
The two words, in a way, explain the concept ― growth (growth) and exploration (hacking) ―, because the practice consists of exploiting loopholes from the market to unlock opportunities and develop exponential growth strategiesl.
find out now how growth hacking works and what are the advantages of using it in companies:
What is growth hacking for and how does it work?
The word “hacker” usually has a negative attribution, but the term refers to an individual who seek knowledge more detailed, beyond the ordinary.
O growth hacking it’s a way of do marketing based on opportunity studies and application of tests. The professional who follows this strategy analyzes the situation from where the company is to where it wants to go.
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widely used by startups including in Silicon Valley (USA), this action of entrepreneurship uses techniques such as IF THE (Search Engine Optimization), website analysis, Content Marketing, ads, affiliates, digital influencers, automations, integrations and various A/B tests.
The main objective of growth hacking is accelerated growth. For this, it uses a methodology focused on Conversion testing and optimization.
The concept is similar to that of Digital Marketing, but as Marcelo Toledo, author and developer of startups, explains, growth hacking is a little more comprehensive and is not limited to just marketing management actions.
The professional needs to consult other sectors of the company, such as product development, finance, business operations and even human resources. Therefore, it is the scope where the strategies of product development it’s from marketing meet.
What are the advantages of investing in growth hacking?
Now that you understand better what the growth hacking its responsibilities and how it differs from the marketing meet 5 benefits of investing in this strategy:
1) Fast growth
The main objective of growth hacking is to promote the accelerated growth of companies. The professional analyzes various areas of the organization, proposes improvements and works on campaigns aimed at closing deals and gaining market share. Strategies usually involve low costs and creativity real demands of any startup.
The second benefit we highlight is the ability to increase financial results without burdening the company keeping low costs. Airbnb is an example of this, as the service provided by the company is the integration made between property owners and people who want to rent.
You operational costs and processes should not grow much ― even though the company has consecutive increases in the number of customers ―, making scalability possible while maintaining profitability.
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3) Sales predictability
Due to the use of Inbound Marketing and results measurement techniques, the professional growth hacker is able to forecast sales in a given period based on transaction history and stored data.
Another essential feature is having a larger sales funnel than the one generally adopted in Inbound Marketing, with a certain emphasis on recommendation. The use of viralization techniques as an indication to friends through social networks, makes the company known in the market in a faster and the very low costs.
5) Choice of alternatives
Through integration between product development and marketing, the growth hacking can identify the better opportunities and apply the right tools to promote the growth of organizations.
To be implemented with mastery for each decision that the company needs to make growth hacker you should ask yourself what the impacts of this choice and other alternatives will be for the growth of the business.